ASX small cap Creso Pharma (ASX:CPH) taps A$8.992m funding; Cannabis top gun Bruce Linton onboard


  • Creso Pharma secured firm commitments to raise up to ~A$9 million from institutional, professional, as well as sophisticated investors.
  • The funds shall be used for development and accelerating growth across its existing animal and human health CBD product.
  • Creso Pharma Onboarded Bruce Linton as a Strategic Advisor. Mr Linton is the founder and ex-CEO of Canopy Growth Corporation.
  • Mr Linton’s expertise, deep industry experience and network shall further shape and expedite the global expansion of the Company.
  • Also, Nova Scotia Liquor Corporation gave a 2nd purchase order to Creso’s subsidiary, Mernova worth ~C$139k.

ASX small-cap player Creso Pharma Limited (ASX:CPH) is engaged in delivering products with standardised dosing and formulations for humans as well as animals. The Company utilises GMP standards for development and manufacturing of its products as a reference for quality excellence with primary product registrations in Switzerland.

On 7 October 2020, Creso Pharma made two announcements related to raising fund and onboarding of the new Strategic Advisor-

  • Creso secured commitments to raise up to approximately A$9 million.
  • The Company onboarded Bruce Linton as a Strategic Advisor, who is the founder and ex-CEO Canopy Growth Corporation (NYSE:CGC).

Further, the Company announced on 9 October that Mernova, its Canadian subsidiary, received a 2nd purchase order, worth C$138.960k from Canada-based Nova Scotia Liquor Corporation.

DO READ: Needle on 3 ASX-listed Healthcare Stocks: Telix, Creso, MGC Pharma

Let us talk about Creso Pharma’s announcements in detail-

Creso Pharma taps A$8.92 Funding

On 7 October 2020, Creso Pharma disclosed that it had secured firm commitments from institutional, professional, as well as sophisticated investors to raise up to approximately A$8.992 million through the issue of almost 309 million fully paid ordinary shares at a per-share issue price of A$0.0291.

The Company stated that the issue price signifies a 25% discount to the closing share price of A$0.0388 on 30 September 2020.

Funds raised with this Placement shall be deployed towards repayment of debt and amounts owed to secured lenders to redeem outstanding convertible notes. Moreover, the funds shall also be used for-

  • Development of the business units of Creso Pharma in Canada and Switzerland.
  • For operational expenses.
  • To speed up growth across the existing animal and human health CBD product lines and associated costs with the Placement.

ALSO READ: A Walk Through Two ASX-listed Cannabis Stocks: Althea and Creso Pharma

Creso Pharma Onboarded Bruce Linton as Strategic Advisor

On 7 October 2020, Creso Pharma announced that its subsidiary, Creso Pharma Switzerland GMBH had nominated Mr Bruce Linton as a strategic advisor. Mr Linton is the founder as well as ex-CEO of Canopy Growth Corporation, first cannabis producing player listed on the NYSE.

He is one of the world’s prominent cannabis executives and a skilled entrepreneur. Mr Linton has vast experience in the cannabis industry as a founder, CEO, Board member and adviser to several global cannabis companies.

In consideration for the services of Mr Linton and to align his interests with those of shareholders, the Company will issue 30,000,000 Options to Mr Linton. Further, the Company added that each Option has an exercise price of A$0.039, which is subject to shareholder approval. The expiry date for these Options will be of five years from the issue date.

The significant accomplishments of Mr Linton include his position as founder, ex-CEO and Chairman of Canopy Growth Corporation. During his time with Canopy Growth, the market capitalisation of the Company reached US$15 billion.

The Director of Creso Pharma, Miri Halperin Wernli commented-

During his tenure in the Canopy Growth, Mr Linton assured market support for around 16 rounds of financing of more than US$5 Billion in public capital markets along with private placements as well as over 30 mergers and acquisitions (M&A) activities.

Currently, Mr Linton is working as an Executive Chair in Gage Cannabis Co. He has experience in the psychedelic drug space as a director of psychedelic inspired medicine company, Mind Medicine Inc.

ALSO READ: Four ASX Companies’ Share Price in Focus: Magellan, Creso Pharma, Electro Optic, DWS

Image Source: Kalkine

Bruce Linton and Creso Pharma

Mr Linton is joining as a Strategic Advisor in Creso Pharma. The unique intellectual property (IP) of Creso Pharma with established global distribution footprint as well as robust product pipeline targeting different categories has drawn the attention of Bruce Linton to the Company.

He deems all together these put the Company in the optimal position to outshine across the globe and continue to develop innovative products for complementing the existing products portfolio of the Company.

Mr Linton has extensive experience in the cannabis sector and owns multiple positions with international players; also, he has worked with some large financial institutions which, also includes the World Bank.

The expertise, deep industry network and experience of Bruce Linton shall further shape and expedite the global expansion of Creso Pharma.

Mernova wins 2nd purchase order from Nova Scotia Liquor Corporation

Halifax-headquartered Nova Scotia Liquor Corporation granted CPH’s Canadian subsidiary, Mernova a 2nd retail purchase order worth C$138,960. The 2nd PO is for the subsidiary’s premium strains (Brand Name: Ritual Green), HPG13 and Lemon Haze (20-25% THC, under 1% CBD).

Creso believes there will be additional orders in the next few weeks and intends to add more strains to the brand. The PO follows the first PO, worth C$180k, rewarded on 21 September.

Stock Information: On 9 October 2020, the share price of CPH stood at A$0.033 up by 6.452%. With a market capitalisation of approximately A$12.77 million, the Company has nearly 412.09 million shares trading on the ASX.

DO READ: Has Cannabis Come of age to tackle COVID-19? Look at ASX-Listed Cannabis Stocks- ASX:CPH, ASX:CGB





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